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Dubai property price increases to continue in 2013: report


14:41, January 28, 2013

DUBAI, Jan. 27 (Xinhua) -- Stock-listed developers in Dubai jumped in value Sunday on a report released by property services company Asteco that prices in the villa and apartment segment would extend the positive momentum from last year into the first half of 2013.

According to the report, shares of the United Arab Emirates ( UAE) biggest developer Emaar Properties surged to a three-year high on Sunday, closing up 3.57 percent at 4.64 Dirham (1.26 U.S. dollars).

Emaar, the developer of the world's tallest building Burj Khalifa (828 meters) benefited from Asteco's report, which said that strong leasing and sales in the Dubai property market demand is set to continue in the first half of 2013.

Shares of Dubai-based Islamic property firm Deyaar Development also posted gains, closing up to 1.35 percent at 0.375 Dirham (0. 102 dollar), said the report.

Asteco added that in the fourth quarter of 2012, villa sales prices were up on average 23 percent year-on-year and apartments made average gains of 14 percent during the same period.

The latter half of 2012 witnessed better-than-anticipated performance "in terms of pricing, transaction activity and occupancy as well as new real estate launches," said John Stevens, managing director of Asteco.

The highest growth rates year-on-year for villas were recorded in the luxury villa resort "Springs," where a three-bedroom unit now costs 140,000 Dirham (38,178 dollars) per annum, a 27 percent increase.

Apartment rental rates grew most in "Discovery Gardens" near the free port Jebel Ali, with a 23 percent increase to hit 45,000 Dirham (12,271 dollars) annually for a one-bedroom unit.

Dubai cashed in from an inflow of investment capital from Arab and Asian investors who jumped the economic rebound of the Gulf Arab sheikhdom which is the UAE business, financial and tourism hub.

"In terms of supply and demand, Dubai is still benefiting from the euro crisis and the Arab Spring as people seek stability and better economic conditions," the report said, adding that Dubai harbors the Middle East's largest container port as well as the region's biggest airport.

The UAE economy grew 4 percent in 2012 and he expected the same rate of growth for 2013, said UAE minister of economy Sultan Al- Mansouri.

The UAE, a major oil supplier, would remain strong amid constant high oil prices, a influx of business and trade as well, because of huge investments in infrastructure projects, he said, adding that the UAE central bank's decision not to impose restrictions on property purchased by foreigners would also continue to boost the real estate market.

"The recent clarification by the UAE Central Bank that it will not impose any immediate loan-to-value (LTV) caps on UAE banks, suggests that existing LTV ratios are likely to remain unchanged, in which case Asteco forecasts that the sales market will enjoy continued growth in 2013," said Stevens.


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